. >> michael cohen may know katz better than most. for years, he was the attorney to the insurance agency. he invested more than a million dollars of his money in the financial arm of katz's business. >> obviously, when you enter an arrangement like this, you have to have trust. i'm disappointed the trust wasn't warranted. >> it's a discovery he made last fall. as abc2 news investigators first told you last november. katz's license was revoked to sell insurance as he committed fraudulent practices. $2million are missing from insurance payment plan. the lending arm of his company with more man a dozen creditors including michael cohen left on the hook. >> everybody as far as i know had some personal relationship with hall katz and so essentially, it's not only just a question of misappropriation of money, but it's a betrayal of trust. >> and it may be a costly mistake in judgment for friends and family. some of whom cohen says lost their college funds, their retirement money and live savings. some put in hundreds of thousands of dollar